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  1. #1
    Shy
    Join Date
    Jul 2014
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    Cambridge Ontario
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    Deposits upon registration

    Is it unusual to ask for a first and last week deposit upfront - upon registration?

  2. #2
    Euphoric ! bright sparks's Avatar
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    I charge 2 weeks deposit or 4 weeks deposit if it is a pair of siblings upon signing to secure their spot. This money is applied to their last weeks upon notice either from the family or given by me. They also have to pay for care from day 1 and I take payment biweekly in advance of care given.

  3. #3
    Euphoric !
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    I never used too because most of the time they were starting asap anyways. Than I had a few spaces open up a few months down the road and I wanted to make sure that they were committed to it so I started charging a holding fee/deposit and I increased my notice of withdrawal. The one week payment is used as a non-refundable holding fee and once they start care, it then turns into a one week payment that is used towards their last month's fee. I also charge 2 weeks in advance, so their first payment is for 3 weeks. It can be a lot of money for some all at once and I do think it has turned some away but I'd rather do it this way than risk getting screwed over.

  4. #4
    Euphoric !
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    I do things differently. I charge a $200 deposit (non-refundable) to hold a spot. Then once they begin care I use it towards their first 2 weeks pay. I have never had an issue doing it that way. Only had issues with one family leaving and trying to not pay their 2 weeks notice but in that case there was a lot of other issues. I did finally get my money out of them.

  5. #5
    Outgoing
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    Aug 2014
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    I do it differently - again.

    One week deposit per child with contract. I don't consider a place taken without both of these. Deposit is to hold the place and non-refundable. They get it back as their final week of care which if someone is being a pain about paying their notice period, is useful to have.

    I won't hold a current vacancy for more than a month unless the parents pay a retainer for it, normally 50%. Of course, they can start early but would pay full rates then.

    I won't hold a place for more than 2 months unless it's for my convenience - i.e. I've just filled my places for Sept 2015 with deposits and contracts so of course, those parents won't be charged a retainer as the place won't be available before their start dates anyway.

  6. #6
    Expansive...
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    I don't hold spots , ever . So I do not ask for a deposit . I charge a monthly fee that is paid in advance . I also do not have a termination policy in place . If I want or they want care can stop any time . I like it like that and have only had to term 3 times . I opened way too eager ! And was so excited to be open that I under charged . My experience is you get what you charge now !! I raised my prices and I have been happy since !!!

  7. #7
    Euphoric !
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    Racheal, our deposits sound alike

    Secondtinearound, I was like that too, didn't hold spots but than I had a mom give 2-3 months notice ( cuz she was pregnant) and I decided to charge a deposit so that I could fill the space ASAP but if they decided to not take the spot 3 months later, at least I wasn't completely screwed if they found care elsewhere.

    Not having a termination notice policy is too inconsistent for me lol. I'd feel so lost losing that income instantly.

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  9. #8
    Outgoing
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    One side issue worth mentioning for newer providers....Be careful how you word the reasons for the deposit.

    If you label it as a "Deposit for Day Care/Day Care Services" regardless of what your contracts state, you will not be entitled to keep it should the parents change their mind.

    Legally, if you take a deposit for a service which doesn't end up happening, then a full-refund has to be given because the service was never provided. However, if you explain, label, write on the deposit receipt that it is a "Deposit to hold a place" then you can keep it.

    This applies to all service related industries in Canada.

    i.e. If a photographer charges a deposit for a wedding and refers to that as a "Deposit for Wedding Photography Services" if the wedding is cancelled and the service not required, in court he/she would be forced to hand it back. If they call it a "Deposit to hold the date for wedding photography services to be available" then they keep it.

    I know wedding photographers who referred to their deposits as part of their wedding package and had to hand it back when they initially refused and were taken to court.

  10. #9
    Expansive...
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    I charge a 2 week non refundable deposit to be used towards the last 2 weeks of care. I also charge 50% of regular fees to hold a spot beyond one month. I used to charge a very minimal deposit, and had people walk away, now they think twice about losing 2 weeks fees.

  11. #10
    Expansive...
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    I get that 5lm !! I just perfered a quick exit !!

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